What Tax Problem Should a Rochester Tax Attorney Review First?

An omitted form, incorrect deduction, reporting error, or payment-credit problem may sometimes be addressed through an amended return or supporting documentation. Once an examination or formal protest period begins, correcting the return may not resolve the procedural issue by itself.

An audit generally concerns a particular return, tax period, and set of questioned items. Receipts, invoices, payroll records, bank statements, contracts, and accounting records matter most when they connect directly to the adjustment. An IRS audit defense review should therefore begin with the examination notice and information requests rather than an unfocused production of financial records.

A proposed adjustment does not necessarily mean the amount has reached collection. A taxpayer who can still dispute liability may need to preserve review rights, while someone who accepts the amount but cannot pay may need to address payment arrangements or collection alternatives.

An IRS examination may lead to proposed adjustments and review by the IRS Independent Office of Appeals. If the IRS issues a statutory Notice of Deficiency, the taxpayer generally has 90 days from mailing to petition the U.S. Tax Court, or 150 days when the notice is addressed to a person outside the United States. A petition may be filed electronically through DAWSON or on paper with the U.S. Tax Court in Washington, D.C. Filing documents at a federal courthouse in Rochester does not start a Tax Court deficiency case.

Certain collection matters may proceed through a Collection Due Process hearing. After the IRS Independent Office of Appeals issues a qualifying Notice of Determination, a Tax Court petition generally must be filed within 30 days. That period should not be confused with the 90-day deficiency deadline.

A New York audit can lead to a Notice of Deficiency, Notice of Determination, or another notice carrying formal protest rights. Depending on the matter, a taxpayer may request a Bureau of Conciliation and Mediation Services conference or petition the Division of Tax Appeals. BCMS conferences may be conducted remotely or at designated locations, including Rochester, while Division of Tax Appeals petitions are filed in Albany. Personal income tax deficiency and sales and use tax determination petitions generally have a 90-day filing period, or 150 days in the applicable outside-the-United-States circumstance. Other matters may use different periods, so a tax disputes review should begin with the operative notice.

A City of Rochester real property assessment dispute does not follow IRS or state income-tax procedures. A formal annual challenge generally begins with the Board of Assessment Review, and the City currently requires complaints to be received by the third Tuesday in March. Later review may include Small Claims Assessment Review or an Article 7 proceeding. A real property tax assessment matter should therefore be tracked separately from federal or state tax disputes.

Keep the operative notice, affected return, proof of filing or payment, prior correspondence, and records supporting the disputed item. A business may also need ledgers, payroll reports, invoices, exemption certificates, bank records, contracts, or transaction records. More documents do not necessarily make the file stronger. Each record should help explain a particular adjustment, payment, deduction, taxable transaction, or other disputed fact.

An audit document-request date is not necessarily the deadline to request IRS Appeals, file in Tax Court, seek a New York conciliation conference, petition the Division of Tax Appeals, or challenge a property assessment. If several notices concern different years or taxes, record each deadline separately along with the filing method and proof of submission.